KANPUR AGENCIES PRIVATE LTD. Vs. COMMISSIONER OF INCOME TAX, LUCKNOW.

JUDGEMENT

(1.) THE assessee is a private limited company and during the accounting period July 12, 1953, to July 1, 1954, relevant to the assessment year 1955 -56, it functioned as the sole selling agent of the Muir Mills Company Ltd.

(2.) THE assessee also claimed a deduction of a sum of Rs. 9,560 on account of repairs to the premises employed by it for the purpose of its business. The premises did not belong to the assessee. It paid rent in respect of it. The sum of Rs. 9,560 was claimed to have been spent by the assessee on the conversion of some manual latrines into flush latrines and on the replacement of the tiled roofs by cement roofs in some of the labourers quarters The claim of the assessee was laid under Sec. 10(2) (ii) of the Indian Income tax Act, 1922. It was rejected by the Income Tax Officer, who added the amount to the returned income.

(3.) REGARDS the first question, it appears that the same question had been raised by the assessee for the assessment year 1954 -55 and before the Tribunal it was conceded on behalf of the assessee that it was entirely at the discretion of the assessee to deal as it liked with the amount collected towards charity and that the amount could be spent according to the pleasure of the assessee. The Tribunal accordingly found that the amount was not held under any trust or binding obligation requiring the assessee to apply that amount to any charitable purpose. When the appeal for the assessment year 1955 -56 came on for hearing before the Tribunal, the assessee was unable to place any further material before the Tribunal and to persuade it to a different view.